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  3. 1. you are given with the regression result that s

1. You are given with the regression result that shows the regression model with k variables....

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Basic Math

1. You are given with the regression result that shows theregression model with k variables. Answer the following parts:

a) How do you tell that a certain variable is influential?

b) Suppose the theoretical issue said there exist a linearconstraint, how do you figure out the constraint holds?

c) Suppose you have two sets of explanatory variables; how didyou consider which set is the better one?

d) What’s the meaning of R-squared? Should we always look forthe model that has the high R-squared?

e) Suppose the explanatory variables are subject to lineardependence among themselves, what is the correct procedure toestimate the coefficients?

Answer & Explanation Solved by verified expert
3.9 Ratings (720 Votes)
a We can test for the influence significance of a certainvariable using t test If the p value of the t statistic is lessthan 005 we conclude null hypothesis is rejected H0 bi0 versusHi bi not equal 0 that the certain variable is different fromzero This    See Answer
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